Landlords and tenants can both be found in breach of a commercial lease if they fail to meet one or more of the lease covenants under the Law of Property Act 1925 or the Landlord and Tenant Act 1954. When a tenant breaches the terms of a commercial lease, landlords can respond by serving a Section 146 notice on the tenant or tenants. Tenants who fail to resolve their breach, whether through restitution or meeting the breached term, risk consequences such as lease forfeiture.

 

When a landlord breaches the terms of their lease, tenants can take legal action to force the landlord to make repairs, pay reparations, or potentially revoke the lease, allowing them to find better accommodations. Even though the law protects both tenants and landlords from breach of a commercial lease, the procedure of resolving the issue poses several risks to both parties. To avoid the negative consequences of a commercial lease breach, both landlords and tenants must be aware of their rights and responsibilities.

 

Commercial Landlords Breaches

The landlord’s obligations to the tenant should be represented in the lease. The landlord will have violated the commercial lease if they fail to meet these obligations or attempt to abuse their position regarding the property. The following are some of the more typical examples of landlord breach of contract:

• Failure to maintain the property in accordance with the lease terms

• Failure to pay for lease-mandated insurance or services

• • Use of the property without the tenant’s permission and outside the remit of the lease’s permitted uses

• Trying to evict the tenant without just cause or following proper procedure

 

A landlord may breach the contract in a variety of ways, depending on the specific terms of the lease. A detailed and clearly worded lease is crucial for avoiding landlord commitment disputes.

 

Tenant Breaches

Tenant breaches are classified into two categories: “continuing breaches” and “once and for all” breaches.

 

Common examples of ongoing breaches include:

• Failure to maintain property insurance

• Inability to maintain or repair the property

• Unauthorised use of the property, such as residing in the property when that was not permitted

 

Examples of once-and-for-all breaches include:

• Failure to repair the property by a specified date

• Making unauthorised changes to the property

• Unauthorised property assignment

• Property subletting without permission

 

What to do in the event of a Commercial Lease Breach?

Both landlords and tenants will need to consult the commercial lease documentation to determine whether either party has breached the contract. When a breach is discovered, the first step should be to initiate contact with the other party to reach a decision to resolve the dispute. If a lease breach can be resolved informally before formal action is taken, it benefits both parties, especially if the lease is currently in progress. If these preliminary conversations fail, you may consider taking more formal action.

 

Commercial landlords are frequently not liable for the costs associated with building operations; these costs are usually borne by the tenant. Commercial property disputes between commercial landlords and tenants are expensive and time-consuming. We understand that when commercial property disputes arise, the ramifications for the property’s owner or landlord can be enormous. That is why we created a guide explaining why these disputes occur and what to do if one occurs. See our guide here

At Van Eaton Solicitors in London, we act for individuals who are affected by commercial lease disputes. If you or your business is involved in a dispute or wish to pursue a claim on behalf of your business or would like to learn more about ADR, contact us online or by phone at 0208 769 6739 to arrange an appointment.